Finding 1170842 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-01-28

AI Summary

  • Core Issue: Suspension and debarment procedures were not followed for 2 out of 8 transactions, posing a risk of contracting with suspended organizations.
  • Impacted Requirements: Compliance with federal regulations requiring adherence to suspension and debarment procedures before transactions.
  • Recommended Follow-Up: Review and improve current processes to ensure compliance with suspension and debarment procedures for all relevant transactions.

Finding Text

Federal agency: Department of Health and Human Services & Department of Energy Federal program title: Weatherization Assistance for Low Income Persons Assistance Listing Number: 93.568 & 81.042 Pass-Through Agency: Wisconsin Department of Administration Pass-Through Number(s): Contract 00WX2425.06 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Suspension and debarment procedures must be followed before entering into a transaction that is subject to suspension and debarment. Condition: As part of suspension and debarment testing, CLA noted 2 out of 8 transactions where suspension and debarment procedures were not followed before entering into the transaction. Questioned costs: None. Context: As part of suspension and debarment testing, CLA noted 2 out of 8 transactions where suspension and debarment procedures were not followed before entering into the transaction. CLA did an independent check of these contractors to confirm they were not federally suspended nor debarred. Cause: The Organization noted this was an oversight due to the exceptional nature of the procurement (received noncompetitive procurement waivers instead of going through bid process). Effect: Potential to contract with organizations that are federally suspended and/or debarred. Repeat Finding: No Recommendation: CLA recommends the Organization review their current processes in place over suspension and debarment procedures to ensure procedures are followed before entering into transactions subject to suspension and debarment. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

The Organization will review their current processes in place over suspension and debarment procedures to ensure procedures are followed before entering into transactions subject to suspension and debarment.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1170837 2025-001
    Material Weakness Repeat
  • 1170838 2025-001
    Material Weakness Repeat
  • 1170839 2025-001
    Material Weakness Repeat
  • 1170840 2025-002
    Material Weakness Repeat
  • 1170841 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $2.75M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $395,416
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $384,242
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $215,887
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $165,454
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $99,002